Morocco’s Liquidity Needs Rise in July 2022

Morocco’s Central Bank (BAM) has reported that the country’s banks’ need for liquidity assets rose from MAD 79.1 billion ($7.54 billion) last month to MAD 79.3 billion ($7.56 billion) in July.

Laayoune – Morocco’s Central Bank (BAM) has reported that the country’s banks’ need for liquidity assets rose from MAD 79.1 billion ($7.54 billion) last month to MAD 79.3 billion ($7.56 billion) in July.

In order to fulfill Morocco’s banking needs, the country’s central bank injected MAD 91.4 billion ($8.71 billion) into the banking market in July 2022. This marks an increase from BAM’s previous reported liquidity injection, which was MAD 85 billion ($8.1 billion).

This month’s liquidity injection is divided into four parts:

The first constitutes MAD 37.2 billion ($3.55 billion), which will be further divided into separate advances towards Morocco’s banks throughout seven days.

The second section includes MAD 31.2 billion ($2.97 billion) in the form of repurchase operations.

The third division of the liquidity injection is MAD 22.6 billion ($2.15 billion) in the form of secured loans.

Exchange operations worth MAD 413 million ($39.3 million) comprise the fourth part.

BAM’s liquidity injections seek to reduce the liquidity needs for Morocco’s banks.

The report added that the daily average trading volume between banks stood at MAD 3.6 billion ($340 million).

BAM’s report is a monthly edition that the country’s central bank issues to reveal data concerning the different transactions, loan interests, inflation rates, and other monetary information both inside and outside the country.